Exploring key antecedents of purchase intentions within different services

Abstract

Purpose – The purpose of this research is to investigate the direct and indirect effects of these determinants on purchase intentions. Competitive environments such as those in retail and banking industries impose increased pressure on managers to enhance customer satisfaction and purchase intentions. Even though satisfaction and purchase intentions are well studied in prior literature, their determinants such as service-oriented employee behavior, advertising campaign familiarity, physical environment and service quality have not been fully investigated together. Design/methodology/approach – Data from a survey of 508 customers of Korean up-market retail supermarkets and banks are utilized to empirically evaluate the model. Findings – Results indicate that service-oriented employee behavior and the physical environment have no direct effect on purchase intentions. However, these constructs indirectly influence purchase intentions through the mediating role of service quality and customer satisfaction. Service-oriented employee behaviors play a major role in enhancing service quality and customer satisfaction, but do not directly impact purchase intentions. Interestingly, the strongest direct effect on purchase intentions is more likely to come from service quality, rather than satisfaction. Practical implications – Findings suggest that for service industries such as retail and banking, it may be strategic to invest more resources aimed at enhancing service-oriented employee behaviors and the physical retail environment compared to advertising campaigns. Originality/value – Even though prior research has considered the concepts studied here, this study aims to empirically evaluate a variety of antecedent factors that potentially affect purchase intentions. Relationships are established utilizing data collected in South Korea (an increasingly important consumer market) which adds value to extant knowledge in this area.